Difference between Cost Center and GL Account

Hi All,
I want to know that "what is the difference between Cost Center and GL Account."
Regards

Hi Vidya,
Few points:
1. GL is a FI object and used for external reporting, whereas cost centers are CO objects and used for internal management reporting.
2. In GL you classify the nature of expenses like telephone expenses, travelling Exp. Salary exp etc., whereas by cost center you decide where are expenses were incurred, like Production department, Mkt. Department, HR department etc.
3. You post the FI transactions at GL level whereas the cost center are assigned to those GL account for getting the more detailed information about the expenses.
4. GL accounts are P&L and BS account and only P&L expenses accounts are posted to cost cneters. And you can choose to post it by cost center or not by defining the GL as cost element. If you do not define any GL as cost element, it will not post to cost centers.
I hope it answers your question.
thanks,
Vivek

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hi tefo
differenc is whatever the cost involved will be collected both to the cost center and profit center, when we settle the order it will be settled in the cost element for cost center. the cost will be reflected in profit center which is assinged to the particular cost center.in profit center you can cpature revenue also which is used to map the profit loss for the concern, where as cost center will only capture the expenses
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Cost Center
Key uniquely identifying a cost center.
Use
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Difference between Cost Centre and Cost Element.

Hi Guru's,
what is the difference between Cost Centre and Cost Element.
regards
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Hi,
Cost elements:
A cost element classifies the organization's valuated consumption of production factors within a controlling area
Primary Element - costs that originate outside the company; relate directly to the income statement in FI and must be included in the FI Chart of Accounts
Secondary Element - costs that result from internal allocation activities; NO relation to G/L accounts in FI. These accounts are exclusively for cost accounting and are only maintained in CO
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Functional requirements
Allocation criteria
Physical location
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Cost Element: cost element is an individual which carry cost like salaries, wages, power expenses, etc.. These Cost Elements are Two types
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Dear Experts,
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Difference between Cost Center and GL Account

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